TORONTO, ONTARIO--(Marketwired - Oct 14, 2015) - Montero Mining and Exploration Ltd.'s (TSX VENTURE:MON) ("Montero") funding partner, Ovation Capital ("Ovation"), has committed to expenditures of approximately CDN $2.7 million (before VAT) to acquire a 10% interest in Montero's Duyker Eiland project. On March 2, 2015, Montero entered into an agreement whereby Ovation may earn a 10% interest in the Duyker Eiland phosphate project at asset level by completing a Pre-Feasibility Study and a further 20% interest by completing a Bankable Feasibility Study.
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Dr. Tony Harwood, President and Chief Executive Officer of Montero, commented, "Ovation is providing approximately $2.7 million in funding to advance Montero's Duyker Eiland phosphate project. DRA, Outotec and the Sebata Group have been retained to complete Pre-feasibility, Opportunity and Environment Studies with a view to establishing the costs of developing a rock phosphate mine and fertilizer operation. Ovation is also committed to funding other phosphate opportunities identified by Montero in the region." |
Montero completed a Technical Report (NI 43-101 compliant) prepared by AMEC (news release December 14, 2011) and an independent Preliminary Economic Assessment ("PEA") report of the Duyker Eiland project prepared by Turgis Consultants (news release February 28, 2012, filed on Sedar April 13, 2012). The bulk of Ovation's project level financing is being used to complete engineering and environmental studies by DRA Global ("DRA"), Outotec (in conjunction with Sofreco) and the Sebata Group.
DRA completed a positive review and update of the information reported in the PEA on Duyker Eiland (news release July 7, 2015). DRA is utilizing this updated information to complete the Pre-Feasibility Study. The drilling and resource estimation is expected to be completed by another consulting group.
Outotec will complete an Opportunity Study Report for the integrated Sulphuric acid, Phosphoric acid and Di-Ammonium Phosphate (DAP)/Mono Ammonium Phosphate (MAP) Fertilizer plants, inclusive of associated utilities, infrastructure and off-sites. Further to this, the possibility of producing a second phase Lime Ammonium Nitrate (LAN), Urea and other down-stream products will be examined depending on Market Study results and natural gas feed possibilities. Outotec will work with the leading French fertilizer consulting company, Sofreco, on the study.
Sebata have been retained to conduct an Environmental Impact Assessment for the development of the phosphate rock mine at Duyker Eiland and a Fertilizer Plant to be located in the Saldanha Bay Industrial Development Zone.
Upon completion of a positive Pre-Feasibility Study, Ovation may elect to provide additional funding to earn a 20% interest in the Duyker Eiland Project. The amount required to earn a 20% interest has yet to be determined.
Ovation is also funding the due diligence of Montero's Greenflash Phosphate Project. In the event the due diligence is positive and the parties elect to proceed with the acquisition, Greenflash will represent a second partner funded phosphate asset in South Africa. These investments are being made to secure supplies of rock phosphate in order to establish a fertilizer plant at Saldanha Bay in South Africa.
Qualified Person's Statement
Turgis Consulting, now Royal Haskoning DHV - Mining, is a Johannesburg based engineering consultancy. The PEA team was headed by Sten Johansson (MSAIMM), a Process Engineer and Andrew Pooley (FSAIMM), a Mining Engineer, who covered the mining aspects of the PEA. Both are qualified persons for the purpose of National Instrument 43-101. The technical information contained in the PEA and in this press release was reviewed by Mr. Mike Evans, M.Sc. Pr.Sci.Nat., who is a qualified person for the purpose of National Instrument 43-101 and a Consulting Geologist to Montero.
About Montero Mining & Exploration
Montero Mining and Exploration Ltd. is a mineral exploration and development company engaged in the identification, acquisition, evaluation and exploration of mineral properties. These include rare earth elements (REE) in Tanzania and phosphates in South Africa. Montero remains focused on bringing in a strategic investor for the further development of the Wigu Hill Rare Earth Element Project in Tanzania, which is a high-grade, undeveloped Light Rare Earth Element deposit. Montero has entered into an agreement to develop its portfolio of phosphate properties in South Africa with Ovation Capital. Montero trades on the TSX Venture Exchange under the symbol MON.
Signed. Dr. Tony Harwood - President and CEO
CAUTIONARY STATEMENT: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This News Release includes certain "forward-looking statements, which often, but not always, can be identified by the use of words such as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan" . These statements are based on information currently available to Montero and Montero provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements with respect to Montero's future plans, objectives or goals, to the effect that Montero or management expects a stated condition or result to occur, including Montero's estimates with respect to mineral resource quantities, grades and economic potential. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of Montero's mineral properties, and Montero's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: the ability to negotiate an investment with a strategic investor on acceptable terms; changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with Montero's activities; the ability to complete a feasibility study which recommends a production decision; delays in the development of projects; capital and operating costs vary significantly from estimates; and other matters discussed in this News Release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of Montero's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Montero's forward-looking statements. Montero does not undertake to update any forward-looking statement that may be made from time to time by Montero or on its behalf, except in accordance with applicable securities laws.